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Biotech / Medical : SHAMAN PHARMACETICALS - SHMN - U.S. OTC -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (28)	5/11/1998 10:57:00 PM
From: NAG1	Respond to of 69

I have been concerned as well. Results from last several studies not very positive(at least the ones I have seen). Provir, while it got positive results in aids patients, appeared to be a bust in treating travelers diarrhea. They say in their annual report they are continuing to study provir for this indication but from what I saw, I would be very surprised if any new study showed some positive results. They also dropped their drug for dealing with herpes in the annual report(did not see any mention of it anywhere). The reason I am hanging around is that they still have some other drugs in the pipeline and I am willing to wait to see how they develop(their antifungal nikomycin?sp can be a blockbuster) as well as their diabetes drugs but I was mostly interested in shmn for provir and the possibility of its use for ordinary diarrhea. This was going to be the thing that would make the company in my mind. SG&A expenses increased in the report today, new shares issued over the past year(about a 25% dilution) as well as being very free in their executive compensation(significant bonuses as well as stock options-all for a company without a product on the market) makes me look very hard at this company as an investment. The only thing I have not seen them do is reprice the option price for the execs(if I see that, I will sell). Why don't I sell if I feel this way? Right now, just stubborness to prove to myself that I did not make a mistake with this company and because of the chance that one of their big gun products may show some good results in the near future. However, it would not take much at this point in time for me to walk away. Just my opinion for what its worth. Neal

To: Mark Adams who wrote (28)	5/12/1998 12:04:00 AM
From: Mark Adams	Read Replies (2) \| Respond to of 69

OK- SHMN reported after the close, "loss of $8.5 million, or $0.48 per share" & "Cash and cash equivalents at March 31, 1998 were $14.2 million.". Based on this, I'd say cash is < $1/share. More importantly, their burn rate of $8million/qtr means refinancing will be required within 6 months. Not a problem if good news prior to then bounces the price up. But my guess is people were actively shorting this as the price tried to rise above $5, betting that refinancing would drive the price down during the next quarter. biz.yahoo.com What is surprising is this volume anticipated the earnings release well after the market close. I don't recall a move up on their May 8th Fast Track announcement. Very strange. Can a fast track be completed in three months?